According to Mr. Nguyen Hoang, Director of R&D division DKRAVietnam, to search for apartments priced from 35-40 million VND / m2 in the suburbs of Ho Chi Minh City at this time is no longer easy, if not going “extinct”. .
According to industry experts, apartments priced at 20-25 million VND / m2 are historic in Ho Chi Minh City, even “extinct” in neighboring provinces such as Dong Nai, Binh Duong. The current apartment price of 40 million VND / m2 is also “tired” to find and forecast to become a “rare” price on the market in Ho Chi Minh City in the context of increasingly meager supply.
Industry experts have pointed out a series of reasons why the price of 40 million VND / m2 for apartments in Ho Chi Minh City is about to become “of the past”, in which there are 2 main reasons for creating a new price level for the market. apartment school in Ho Chi Minh City during the past time.
Supply is anhydrous, prices increase
That is a fact of the current real estate market. When supply is scarce, there will be fewer buying options and increasing the selling price of course. Any product is the same, not only real estate. Even in the context of the Covid-19 translation, the market did not recognize any investor showing signs of decreasing apartment prices in the primary market, if the secondary price has slowed down for a while, but at present, there is still a rise. up.
Indeed, in the past 2 years, the supply of apartments in Ho Chi Minh City has been continuously plunging, and this has not shown signs of improvement in the first 3 months of 2021. According to data from the HCM City Department of Construction, Q1 / 2021 City has 8 projects granted products eligible for sales with 3,422 apartments and 414 low-rise buildings. Compared to 2018, this supply decreased by nearly 90%, compared to 2019, it decreased by about 85% and decreased by 75% compared to 2020. Previously, this unit also pointed out that most projects were eligible to sell houses. in future formations are all in the high-end segment with the selling price of over 40 million VND / m2. Very few projects are in the price range of 35-40 million VND / m2.

Apartments priced at 40 million / m2 are becoming “rare” goods in the real estate market in Ho Chi Minh City
In fact, at present, projects in Ho Chi Minh City are offered to the market at the moment very few, and projects still priced at 40 million VND are also extremely scarce. For example, recently, Nam Long Group is offering the second phase of a Mizuki Park apartment in Binh Chanh, Ho Chi Minh City with the price from 40 million VND / m2, this is considered a project with a soft price compared to the the common level of the apartment market in Ho Chi Minh City at the present time. According to this unit, the fact that the number of apartments for sale in this period is not much, it is certain that the price level will continue to increase when the South Saigon area is also very rare for new housing projects to be deployed because of the land fund. clean exhausted.
Meanwhile, the market in Q1, in Ho Chi Minh City also recorded only a few apartment projects for sale, but mainly located in the high-end segment. According to a report by Savills Vietnam, in the first quarter, there were 2 projects, Masteri Lumiere in District 2 (old) and King Crown Infinity in Thu Duc (old), accounting for 33%. However, King Crown Infinity has reached 90 million VND / m2, while Masteri Lumiere is not less than 90 million VND / m2.
Or another project in Thu Thiem, The River, currently has an average price of 138 million VND / m2 … so to see, the selling price of apartments in Ho Chi Minh City has reached the high price mark, but the source of goods for sale is not much. causing the price level to continuously establish new ground. In the city center to find a project, the price of 60-70 million VND / m2 is no longer available, but in the suburbs like Binh Chanh, Nha Be is also difficult to find apartments priced at 40 million VND / m2 as the time. 2-3 years ago. Accordingly, which apartment project is offering this price at this moment is considered as an advantage in purchasing power because the price level will surely continue to increase when the supply is increasingly exhausted.
According to a report from Savills, the primary apartment supply in Q1 / 2021 reached more than 4,900 units, down 56% QoQ and 31% YoY. The total new supply reached more than 2,200 units from 2 new projects and the next phase of 8 existing projects, down 73% quarter-on-quarter and 38% year-on-year, showing that the supply of apartments is indeed on the decline. Ms. La Kim My Duyen, Deputy Sales Director, Housing Business Division, Ho Chi Minh City Savills, said the good economic growth coupled with very low current supply pushed up demand and price level. high.
With the same point of view, according to the Vietnam Real Estate Brokerage Association, currently, Ho Chi Minh City is very scarce products offered for sale on the market (including new and stock items). Products on the market are mainly concentrated in Thu Duc City, while in the South and the West, new products are produced. Particularly in Thu Duc City, apartment prices continued to increase in the first quarter of 2021. The average price in this area ranges from 60-70 million VND / m2, while in other areas, the price is still 40-50 million VND / m2, but also very scarce new sources.
According to Mr. Nguyen Hoang, Director of R&D division DKRAVietnam, to search for apartments priced from 35-40 million VND / m2 in the suburbs of Ho Chi Minh City at this time is no longer easy, if not going “extinct”. . Thus, to see, the selling price of apartments in Ho Chi Minh City is on the rise, even projects with prices around 40 million VND / m2 are gradually becoming rare goods in the market.
Juridicalslow, high input costs, constituting high prices
According to Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam, due to the lengthy legal procedures, in the past, in the same location, the apartment price was about 30 million VND / m2, now it is 50 million VND / m2.
“Legality is also one of the reasons why two real estate are placed next to each other, but often the construction project is always higher than the previous one. The reason is not because of newer apartments, but because of costs. push in more “, Dr. Khuong emphasized.
This expert said that the longer the project, the more difficult the project, the output with the same product, the price will be different. Instead of running a financial model, it is expected to sell 25-30 million VND / m2 with a period of 2 years, but to do paperwork from approving policies, detailed planning 1/2000, planning 1/500, financial obligation … it is 5 years later. At that time, the output product will be called middle and high-end because it sells for 50-60 million VND / m2, but it is not possible to sell at a cheaper price.

According to experts, input costs increase, real estate prices can not decrease
Sharing the same point of view, previously exchanged, Mr. Ngo Quang Phuc, General Director of Phu Dong Group said that four factors make up the price of a product sold to the market. Almost 4 factors have not decreased, or even increased, real estate prices cannot decrease.
Specifically, the land fund, currently the land fund in the center or outside the center is very scarce, not as abundant as before. It is no longer easy for businesses to own a land fund for project development. Because of the scarcity, the price will definitely increase.
Next, construction costs: Compared to 3-4 years ago, all labor costs, construction materials … to make a project increased. This means that the selling price cannot be reduced.
Financial cost: According to Mr. Phuc, the financial cost for a project is currently very high. Legal procedures are increasingly delayed, meaning that it takes businesses longer to complete projects. For example, buying a project of 200 billion dong, a year, the business must pay 24 billion interest, if the legal lasts up to 3 years, the business must pay more than 70 billion interest. This means that the financial cost of land increases, plus the selling price, it is difficult for real estate to reduce prices deeply.
The last factor is the expected profit of investors. This is a subjective factor that can be adjusted for each investor / investor. But when the 3 factors that make up the product’s price increase, only one of these factors can be flexible, it is also difficult to push the real estate price down.
According to the Vietnam Real Estate Brokerage Association, due to the scarcity of new products, the inventory on the Ho Chi Minh City market is not much, the price is at a high level, so the demand for investment continues to move strongly to neighboring areas. Binh Duong. Pushing apartment prices in Binh Duong up to 30-35 million VND / m2.
Although the price is high, according to the transaction records of Ho Chi Minh City apartments are still quite good in recent years. According to the Vietnam Real Estate Brokerage Association, in the first quarter of 2021 in Ho Chi Minh City, although there are not many new apartments offered for sale, the transaction is relatively good. Over the same period in 2020, an increase of 240.5%, compared to the same period in 2020, transactions increase by 228.7%. In which, mid-end apartments are the product lines with the best absorption rates at 55.6%, high-end and low-rise apartments have average absorption rates (53.7% and 54.5%). ).
Ha Vy
According to the rhythm of economic life